The city has started its first takeover of a heritage building under a derelict building certificate, as councillors vowed not to demolish the 100-year-old St. Charles Hotel.

The precedent-setting seizure also marks the first time the city has claimed a hotel under a derelict building certificate and the second time that process was used to acquire a commercial building, city staff confirm.

But the building’s owner vows to fight for his property, potentially to the point of legal action.

On Monday, the city’s downtown development committee voted to take title of the vacant building at 235 Notre Dame Ave., without compensation. The process will be terminated if the building’s owner complies with city bylaw standards in the next 120 days.

Coun. Mike Pagtakhan (Point Douglas), who chairs the downtown committee, said he’s concerned the building will sit empty, even after it’s brought up to code.

“I’m skeptical. I really want to see something happen in that building. It is the gateway to the Exchange District,” said Pagtakhan. “The order has been in place since February 2009. We’ve been very patient with Mr. Zaifman.”

Zaifman said he finished installing fire sprinklers on Friday, though the devices still await testing and inspection. He said discarded materials have also been removed and he expects to meet bylaw conditions in about 30 days.

“There are no guarantees in life, right? But If the system’s in place and operational, we should be able to get it up and running and get it into compliance,” said Zaifman.

The owner will consider court action, if needed to keep the building.

“My plan is to redevelop the property. This is just another minor bump in the road to do it,” said Zaifman. “I’m not anticipating having to go seek legal recourse ... but I’m not entirely ruling it out either.”

The city plans to invite redevelopment proposals within 90 days of acquiring the building. But a report noted demolition could follow if no offer was accepted, which sparked concern among some councillors.

“I was really astounded to see this here about a historic building,” said Coun. Jenny Gerbasi (Fort Rouge-East Fort Garry).

The committee directed staff to strike out the demolition option, then voted to take title of the structure.

“We’re not going to demolish it if (Zaifman) doesn’t comply,” said Pagtakhan.

Technically, the city could destroy the building after a successful full council vote.

Cindy Tugwell, executive director of Heritage Winnipeg, applauded the removal of the demolition option, along with the structure’s seizure.

“I don’t want to see that building sit vacant for another decade ... then it’s demolition by neglect,” said Tugwell.

The city issued its first non-compliance order on the property in 2011. City staff say violations remained last month.

City taking over St. Charles Hotel

The city's downtown development committee moved to take title of the building at 235 Notre Dame Ave. through a derelict building certificate, unless it complies with city bylaw standards within the next 120 days.

The city alleges the owner failed to keep sprinkler and fire alarm systems up-to-date and discard waste materials. The building also lacked a proper fire safety plan, according to the city.

Owner Ken Zaifman said he had installed fire sprinklers by Friday but they were not yet fully tested or inspected. He also said all discarded materials in the building have been removed.

If all violations are addressed in time, the owner will be able to keep the building.

The city issued its first non-compliance order on the vacant property in 2011 and staff say violations remained last month.